Next Edge Capital terminates mutual fund

In a new press release, the Toronto investment firm has declared that it would be terminating the fund in about two months

Next Edge Capital terminates mutual fund

Toronto-based investment firm Next Edge Capital has announced the termination of one of its mutual fund products.

“Next Edge Capital Corp. ("Next Edge"), in its capacity as the Manager of Next Edge Theta Yield Fund (the "Fund"), wishes to announce the business decision that it has made to terminate the Fund,” the company announced in a press release dated July 14.

The fund has been taken out of distribution and is closed to new purchases. Current unitholders, however, are entitled to redeem their units at any time within a 60-day notice period. They would incur no cost for their decision, and their units would be redeemed at their prevailing net asset value.

Should unitholders take no action before the notice period elapses, their units will be automatically redeemed for cash as of the termination date, which is effective on or around September 20, 2016.

The fund was launched in December 2014, which represented the first instance wherein Canadian securities regulatory authorities approved a market-neutral investment strategy within a retail mutual fund. Billed as “an attractive alternative to traditional fixed income vehicles” on the Next Edge Capital website, the fund’s investment objective was “to attain consistent, attractive returns with low correlation to traditional bond and equity markets.”

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